Post on 24-May-2015
description
A Business Presentation on
HTC Even Jasim Alam (09-14710-3)
Rahman Inzamamur (13-23124-1)
Sobhan Rahman (13-23633-1)
Hossain Md. Rakib (12-20281-1)
Hasan Riyad (13-23875-1)
Sarker Protima (13-25034-3)
Industry: Communications EquipmentFounded: 1997Country: TaiwanChairwoman: Cher WangEmployees: 17,413Revenue: $9.77 B77th most powerful brand in Forbes list.
HTC Strengths
• Strong R&D• Aggressive innovation• Awards and recognitions• High market growth• Wide portfolio and high profit
Relentless Commitment to R&D
• Largest mobile Device R&D team in the world
• Unparalleled design expertise in RF, logic , software, mechanical and power
222300
420
900
1075
600
2000 2001 2002 2003 2004 2005
R&D Personnel R&D Investments
84
9
2130
14
20052000 2001 2002 2004
(US$ million)
62
2003
1367
2006
89
2006
Aggressive Innovation
HTC is a first mover• 1080 pixel display - HTC DROID DNA
(2012)• 4G LTE Windows Phone - HTC TITAN II
(2012)• Microsoft-powered smartphone
(“Stinger”) – the SPV (2002)• Microsoft wireless Pocket PC – XDA,
MDA and PPC (2002)• Microsoft Pocket PC – Compaq iPAQ
(2000)• Color palm-size PC (1999) etc
Awards and recognitions
HTC One – Best Smartphone in the Planet – MWC (2014)
HTC One – Phone of The year – T3 Gadget Award (2013)
HTC Onex X – Best Smartphone of MWC – Laptop Magazine (2012)
HTC Onex X – Best in the Show – Tom’s Hardware (2012) etc.
High market growth
• HTC has average 160% growth • HTC holds top position in both
Android and Windows market
Wide Portfolio, High Profit
• HTC has 42 product in the market
• HTC one of highest grossing company in the world
HTC Weakness
• Mostly high end products• Weak shipment networkLack enough product reduced HTC market share 9.3 % to 2.5% in Q1
2013 compared to Q1,2011• Stumble, unaggressive marketing • Products similarity and short life cycle
HTC Opportunities
• Android is highly popular
• Innovation drives the technological industries.
• HTC has many unexplored markets (South Asia, China , Africa)
HTC Threats
• Strong competition from Apple, Samsung, Sony, Nokia
• Cheap substitutes
• Patent war
HTC Market Growth
HTC Market Share
HTC IN BCG MATRIX
• HTC has average 6.2% market share while it enjoys average more than 160% growth .• Due high growth rate and low
market share HTC is a “Question Mark” in BCG matrix.
HTC Strategies : Corporate Level
Concentration
• Every year HTC launces 11-12 products• Continuously trying to expand
business in newer market
HTC Strategies : Corporate Level
Backward Vertical Integration
• HTC is a Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) • HTC holds complete control over
its supply line.
HTC Strategies : Corporate Level
Horizontal Integration: 2007 HTC - Dopod International
Related Diversification: • July, 2011- S3 Graphics• August, 2011 –Dishwire, Beats
Electronic. • Long term partnership -
Windows , Google.
HTC Strategies
Business Level
Differentiation : In 2006, HTC Corp.’s CFO, HM Cheng claimed, “HTC would name the price and they [customers] would take it
Innovation Fast Mover : On February 17, 2010, Fast
Company ranked HTC as the 31st most innovative company in the world
HTC introduced many things as industry’s first like first 1080p display mobile, first 4G LTE windows phone, first Microsoft pocket pc, first 3G Windows phone etc.
Porter’s Competitive Five Forces Model: HTC
Rivalry : HighBargaining power of
supplier: Low
Threat of new entrance: High
Threat of substitution:
Medium
Bargain power of Customer :
High
Bargaining power of customers: High
• Customer has huge influence in phone design and technology selection• Intermediate service providers
makes situation more complex• HTC enjoys some brand loyalty
by virtue of high quality
Bargaining Power of Suppliers: Low
• As ODM and OEM HTC has full control of manufacturing process• HTC doesn’t fully rely on any
supplier
Threat of new Entrants: High
New companies are entering in smartphone industry every year
Threat of Substitute Products: Medium
Tablet, PDA, netbook, smart watch etc. are potential substitute of smartphone
Competitive Rivalry within Industry: High
• Smartphone industry is highly competitive• HTC experience high
competition from Apple , Samsung , Sony, Nokia etc. competitors
Organizational Structure of HTC
HTC is innovation driven company
Innovation requires open communication network, minimal formal rule, employee empowerment, flexible and adaptive structure
Large span of control Specialist is ¼ of total employees Finding : structure is organic
Recommendation
• Should continue to produce innovative and cutting edge technology enriched product• Should produce low price product • Should penetrate big markets like China, South Asia , Africa etc.• Diverse categories of Nokia is a ideal footmark• Needed better marketing strategy• HTC must work on to make patent war into an end